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Freight Forwarders' and Freight Handlers' Liability Insurance

Freight liability insurance for UK Carriers and Bailees i.e. hauliers, couriers, freight forwarders and warehouse owners. Covers your business against contractual loss or damage to your clients goods while in your care.

What is Freight Forwarders Liability Insurance and how does it differ from marine cargo insurance?

Unlike marine cargo insurance which is in most cases obtained by the owner of the cargo, as a freight forwarder you will need liability insurance to cover accidents, damages or loss of cargo you are liable for.

That being said often cargo is also covered but will depend on the terms and conditions put in place by the freight forwarder.

Our team can advise you on all aspects of contracts and conditions surrounding your insurance policy no matter whether your business specialises in national or international freight or whether you handle freight by sea, land or air.

Policies and exclusions may vary from insurer to insurer in most cases, however, we are able to find the insurer that will offer the best match for your business' needs. Speak to one of our experienced brokers today to see what we can do for you and your business.

  • Freight Liability

    Covers UK based businesses for financial loss when found liable for loss or damage to goods that you are responsible for the movement and handling of. Logistic service providers covered by the policy include freight forwarders, haulage contractors and warehousekeepers.

Typical Insurance Key Features

Please speak to your broker for further information and a quote.

  • Legal Expenses
  • Unwitting CMR cover
  • Clerical errors and omissions
  • Hired-in equipment
  • Own equipment
  • Financial Loss
  • Drivers’ personal effects
  • Debris removal costs
  • Temporary storage
  • Temperature controlled goods
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Questions
Your assigned broker is happy to answer your concerns.
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Straightforward
We ensure obtaining your insurance is straightforward.
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Protected
Correctly covering your business grants you great peace of mind.

Frequently Asked Questions About Freight Forwarders Liability Insurance


  • What is freight forwarder liability insurance?

    Freight forwarder liability insurance is a type of insurance cover designed to protect freight forwarders in the UK against potential liabilities arising from their operations, such as loss, damage, or theft of cargo.
  • What are the main types of liability covered under freight forwarder liability insurance?

    The main types of liability covered include loss or damage to cargo during transportation, errors in documentation or customs declarations, and third-party liability for injuries or property damage caused during the shipping process.
  • Are freight forwarders in the UK legally required to have liability insurance?

    Yes, in most cases, freight forwarders in the UK are required to have liability insurance as part of their licensing and regulatory obligations.
  • What is the significance of liability insurance for freight forwarders in international trade?

    Liability insurance is crucial for freight forwarders involved in international trade as it provides financial protection against potential losses or legal claims, which can arise due to various risks inherent in global shipping operations.
  • What are the key components of a typical freight forwarder liability insurance policy in the UK?

    A typical policy may include cover for cargo loss or damage, errors and omissions liability, legal defense costs, and third-party liability for bodily injury or property damage.
  • How do insurance premiums for freight forwarder liability insurance in the UK usually get calculated?

    Premiums are typically calculated based on factors such as the volume and value of shipments handled, the types of cargo transported, the geographic regions covered, the past claims history of the freight forwarder, and the cover limits required.
  • What are some common exclusions in freight forwarder liability insurance policies?

    Common exclusions may include losses due to war or political instability, deliberate misconduct or illegal activities, normal wear and tear of cargo, and certain high-risk cargo types such as perishable goods or hazardous materials.
  • Can freight forwarders in the UK customize their liability insurance coverage based on their specific needs?

    Yes, freight forwarders can often tailor their insurance cover to suit their specific operations, such as adding cover for specific types of cargo, extending cover to certain geographical areas, or increasing cover limits
  • How does freight forwarder liability insurance protect against claims of errors and omissions?

    The insurance covers legal expenses and damages resulting from errors or omissions in documentation, customs filings, or other administrative tasks related to the shipment process.
  • What role does liability insurance play in protecting freight forwarders from cyber risks?

    Liability insurance can include cover for cyber risks such as data breaches or cyberattacks that may compromise sensitive shipment information or disrupt operations, providing financial protection and support for recovery efforts.
  • How does freight forwarder liability insurance address liabilities related to delays in delivery?

    Depending on the policy terms, cover may extend to liabilities arising from delays in delivery, such as compensation for financial losses incurred by the cargo owner due to late arrivals.
  • In cases of cargo damage or loss, what steps should a freight forwarder in the UK take when making an insurance claim?

    Freight forwarders should promptly notify their insurer, document the extent of the damage or loss, gather supporting evidence such as shipping documents and photographs, and cooperate with the insurer's claims investigation process.
  • Does freight forwarder liability insurance cover liabilities related to subcontractors or third-party service providers?

    Cover can extend to liabilities arising from the actions or omissions of subcontractors or third-party service providers hired by the freight forwarder, depending on the policy terms and endorsements.
  • How does the level of cover in freight forwarder liability insurance affect the insurance premium?

    Generally, higher cover limits and broader cover options will lead to higher insurance premiums, reflecting the increased financial protection provided by the policy.
  • Are there industry-specific regulations or standards that impact freight forwarder liability insurance in the UK?

    Yes, freight forwarders in the UK must comply with industry regulations and standards set by organisations such as the British International Freight Association (BIFA) and adhere to relevant legal requirements governing liability and insurance in the transportation sector.
  • What are some recent trends or developments in freight forwarder liability insurance in the UK?

    Recent trends may include increased focus on cybersecurity cover, evolving regulations related to environmental liabilities, and advancements in technology affecting risk assessment and claims processing in the freight forwarding industry.
  • Can freight forwarder liability insurance cover losses due to natural disasters or extreme weather events?

    Depending on the policy wording, coverage may extend to losses caused by natural disasters or extreme weather events, although specific exclusions or limitations may apply, so it's essential to review the policy terms carefully.
  • How does freight forwarder liability insurance address liabilities during multimodal transportation involving various modes of transport?

    Insurance policies can be structured to cover liabilities throughout the entire supply chain, including multimodal transportation involving sea, air, rail, or road transport segments, providing comprehensive protection for cargo in transit.
  • What are the implications of Brexit on freight forwarder liability insurance in the UK?

    Brexit may impact insurance requirements and regulations for freight forwarders engaged in cross-border trade between the UK and EU countries, necessitating careful review and adjustments to insurance cover to ensure continued compliance and protection.
  • How can freight forwarders in the UK stay informed about changes and updates in liability insurance requirements and cover options?

    Freight forwarders can stay informed by regularly monitoring industry publications, participating in relevant industry associations and forums, consulting with insurance brokers specialising in transportation insurance, and maintaining open communication with their insurance providers to review and adjust cover as needed based on evolving risks and regulatory changes.

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